2016 Annual Report Destination Marketing Hotels Ltd. In Partnership to Increase Overnight Visitation in Edmonton 2016: The Year in Review As we review 2016, We as the EDMH hospitality community are primarily was there any focused on Edmonton and surrounds, so we often don’t intimately register provincial, national and global events good news that and their impact on our capital region. In 2016 those events affected Edmonton? were numerous, significant, and often unthinkable.

2016 saw so many unexpected events… One example was the largest leak of confidential data ever; this was larger than the US diplomatic cables released by WikiLeaks in 2010, and larger than the secret intelligence documents given to journalists by Edward Snowden in 2013. Known as the Panama Papers, the documents show the myriad ways in which the rich can exploit secretive offshore tax regimes. Twelve national leaders are among 143 politicians, their families and close associates from around the world known to have been using offshore tax havens, with people from China and Russia topping the list. At last count, 625 Canadians were identified in these documents.

In June, 2016 an event that shook the pundits occurred when the majority vote chose in favour of ‘Brexit’ through the United Kingdom European Union (EU) membership referendum.

Trade protectionism and a promised southern wall outplayed a campaign filled with rhetoric that would have taken down previous candidates, and Donald Trump was elected the 45th President of the United States. Combined with the Brexit vote, these campaigns unearthed overwhelming segments of the populations who did not feel reflected in earlier governments.

In November, 2016 the Conference Board of Canada reported that Consumer Confidence fell nationally the month prior by 6.3 points to 96.7, its largest monthly decline since January of the same year. At the same time the Consumer Confidence in plummeted 15.4 points putting it near its February all-time low. This wiped out most of the marginal gains it had made since February.

Sustained economic weakness dragged down earnings in 2016. Average weekly earnings began to decline on a year‑over‑year basis in June 2015 but did not bottom-out until May 2016. As a result, consumers pulled back spending, with retail sales

2 \ down nearly 2% in the first eleven months of 2016 adding Oil is always an Edmonton and an Alberta primary economic to the decline of 4.6% in 2015. While the weakness was driver. In 2016 we saw oil dipping to a 12-year low of US$26 a broad‑based, sales of discretionary items were the hardest hit. barrel in February. By year end, thanks to an OPEC agreement to cut production we saw the prices stabilize at US$50 a barrel. Provincially, the policy announced on June 30, 2016 advised Meanwhile, the biggest issue that continued to boil in 2016 was that Alberta’s minimum wage would rise from $11.20 per hour to how to get Alberta oil to tidewater. In November, 2016, the federal $12.20 as of October 2016, and will continue to rise to $15 by 2018. government approved the Trans Mountain pipeline and Enbridge’s Another provincial issue that will turn into an Edmonton issue was Line 3 replacement pipeline to Vancouver, while rejecting the the initiation of the process to transfer powers to our major cities, Northern Gateway plan. The $6.8-billion Trans Mountain project under the Big City Charter. The concern for the EDMH, HAGE, would add 980 kilometres of new pipeline between Edmonton AHLA and the Calgary Hotel Association is the expected selective and Burnaby, B.C. More importantly, it would open up a route taxation of Edmonton and Calgary’s accommodation sector. Our to the Pacific for Alberta’s oilsands. As 2017 approached, this members already contribute 4% to support the provincial Tourism federal acceptance continued to face strong opposition in Levy. Sadly, we’ve seen that many of those provincial funds are British Columbia, including from First Nations communities, redirected away from tourism initiatives and stay in general Vancouver Mayor Gregor Robertson, and local Liberal MPs. revenues – which do nothing to promote tourism to our centres. As we review 2016, was there any good news that affected With all of these provincial and global issues, the one that hit Edmonton? The biggest event was the fruition of a press release closest to home was the most destructive. The wildfires that from December 3, 2013 that advised that the ravaged Ft. McMurray and the Wood Buffalo region in the spring would be moving in 2016 to an at-the-time unnamed new arena. added to Alberta’s economic challenges in 2016. As the Alberta In September 2016 fans lined up to enter the now named Ford Treasury Report states, the wildfires led to the mass evacuation Hall through to . An incredible facility that sets its of over 88,000 residents (roughly 2% of Alberta’s population) goals as being the sport and entertainment hub already altered – many finding refuge in Edmonton – and the destruction of the reality of EDMH hotel members. In the final CBRE Reports over 1,500 residential and commercial structures. Insurable (previously PKF) of 2016, the Downtown Cluster for the first losses caused by the wildfires were estimated at $3.7 billion, the time in 2016 was showing positive growth year-over-year. largest in Canadian history. The temporary shutdown of several oil sands production facilities also resulted in approximately 51 With all of this, the Alberta Treasury Board saw a glimmer million barrels of lost oil production over a two‑month period. of hope by the end of 2016. After falling for most of the first The disruption to economic activity and oil production weighed half of 2016, activity in the province began to improve in the on Alberta’s economic growth in 2016. The human impact of this latter half of the year. Drilling activity picked up and ended event turned Edmonton and our hotels into a compassionate the year at a higher level than in 2015. Exports bounced back evacuation centre, and further linked our two cities. after reaching a low in April, boosted by stronger energy exports and prices. Bitumen production fully recovered In March, 2016 statistics were released stating that, for the first from the wildfire outages and was up nearly 6% in the first time in 30 years, Alberta’s unemployment statistics surpassed eleven months of 2016 compared to the same period in Quebec’s. As the Financial Post identified, Alberta is the epicentre 2015. Alberta’s labour market showed signs of improvement, of the energy boom and bust that began in the second half of with employment increasing by 19,000 from the July low. 2014 and led to a recession in Canada in the first half of 2015.

EDMONTON DESTINATION MARKETING HOTELS 2016 ANNUAL REPORT / 3 EDMH Board of Directors

Our Values Accountability Integrity (left to right): AS OF AUGUST 1, 2016 (left to right): Robin Cumine, Past Chair Dawn Li, Board Member at Large APX Hotels The Metterra and Varscona Hotels on Whyte Collaboration Grant McCurdy, Chairman Robin Cumine, Past Chair DoubleTree by Hilton APX Hotels Stewardship George Marine, Secretary Grant McCurdy, Chairman Hilton Garden Inn DoubleTree by Hilton Karen Naylor, Treasurer Garrett Turta, Vice-Chair Super 8 Edmonton South The Fairmont Garrett Turta, Vice-Chair Richard Wong, Board Member at Large The Fairmont Hotel Macdonald Nova Hotels Colin Perry, Board Member at Large George Marine, Secretary Delta Edmonton South Hilton Garden Inn Richard Wong, Board Member at Large Karen Naylor, Treasurer Nova Hotels Super 8 Edmonton South

In a year that has had more than its set of challenges, Renaissance Edmonton Airport hotel has enjoyed our partnership and collaboration with Edmonton Destination Marketing Hotels. We have been able to take advantage of many of the opportunities to grow business both at the hotel marketing level and as a part of the Edmonton market. Unique in our area as a member, we have shown strong results in all KPIs and look forward to a strong 2017.” David Keam, General Manager, Renaissance Edmonton Airport Hotel

4 \ Our Vision Edmonton will be western Canada’s premier hospitality destination, attracting visitors for a wide variety of activities and experiences, creating prosperity for our members

Our Mission Our purpose is to direct investment in initiatives that create, drive and sustain growth in Edmonton as a travel destination for the benefit of our members

Strategic Objectives 1. To maintain, engage and grow EDMH’s membership. Success includes: • Showing results • Measuring ROI • Communicating with Members • Maximum member participation in marketing initiatives

2. To assure the long term sustainability of Edmonton Destination Marketing Hotels. Success includes: • Showing results • Regular and ongoing communications with members and other stakeholders • Ensuring that the EDMH has the right partners • Measuring ROI • Clusters working at maximum effectiveness and alignment with EDMH goals

3. To seek innovative initiatives that will drive tourism to Edmonton

4. To drive room revenue through investment of Destination Marketing Fund dollars

EDMONTON DESTINATION MARKETING HOTELS 2015 ANNUAL REPORT / 5 AS WE WATCHED OUR WORLD CHANGE FROM THE WARMTH OF EARLY 2015, we thought that all we needed to do was to persevere through 2016 and Alberta’s economic woes would be behind us, enabling us to build our industry again. Indeed the EDMH added nearly $1 million to the Edmonton Tourism marketing budget in 2016, in hopes that we could aggressively campaign ourselves out of this reality. But no such luck…

As was seen in the 2016 Overview on the first pages of this report, there were an inordinate number of unexpected events. The mantra through 2016 was to not just be prepared so much as to be nimble to react. But reacting without a strong foundation as to what the EDMH wants to achieve would leave our organization rudderless. So in August of 2016 the EDMH Board went into a retreat to identify our unique needs and devise an overarching funding strategy that would see us through 2017. The resulting framework enabled the EDMH to adjust, not only to the needs of those who sought us for the funding they wanted, but to ensure that we would stay true to the pursuits that would lead to the greatest benefit to our members. As the Report from the Chair EDMH revenues have gone down, reflecting our members’ RevPAR, it’s become critical to invest wisely. And sadly, due to none of those we fund requesting less money, it’s even more essential to have a and the Executive Director judicious plan. This year saw us adapting to a changing landscape, with the Grant McCurdy | Karen Chalmers emergence of Rogers Place, the proposed changes to , and to the leaving then returning of the Canadian Finals Rodeo (CFR). In the world of Edmonton International Airport, the skies were not friendly with challenges facing our established international direct routes due to low yields. And our needs increased with Edmonton Tourism, with the EDMH focus on conversion, beyond image & reputation. Through all of these issues and changes, your board has worked diligently to identify the best opportunities and the strongest ROI for the monies spent, and to ensure that those we fund understand what we need to receive. As always, it’s a partnership. But it’s one that the board is working hard to deliver our Mission: to direct investment in initiatives that create, drive and sustain growth in Edmonton as a travel destination for the benefit of our members.

6 \ 2016 EDMH Enterprise Budget

FUNDING COMMITMENTS 2016 ($) OPERATIONAL BUDGET 2016 ($) Edmonton Tourism – PROGRAMS 4,849,832.17 AHLA – cheques/stamps/courier. Laptops/cell/office equipment. MetaSearch 400,000.00 Staff salaries & benefits. HAC Travel Intention Study 2016 10,000.00 Stationary/board & staff business cards 236,923.60 CFR Sponsorship 219,047.62 Year End Financial Audit 13,300.00 Edmonton International Airport – Storage unit 1,876.98 new route support & marketing to Staff - local Travel Exp/Expenses 7,631. 23 defend existing routes 743,333.00 AHLA Trustee Fee 50,000.00 TOTAL SPONSORSHIP SPEND: 6,622,212.79 AHLA – office rental, printing & INITIATIVES conference calls 20,701.08 IMPACT/Board networking events 2,059.99 AHLA – bank fees 1,902.97 Membership initiatives (incl. continued CBRE (PKF) Report 1,200.00 experiential photography/packaging/etc.) 2,100.00 Legal Fees 10,193.17 Edmonton Certified & Cluster HQ Support Insurances (board & tenant) 5,605.00 (mileage/parking/AV rental/ F&B for meetings, etc.) 6,382.06 TOTAL OPERATIONAL SPEND: 349.334.03 EDMH Enterprise campaigns on VFR Edmonton Facebook site; AHLA Membership, etc. 96,394.57 TOTAL 2016 SPEND 6,742,102.08

Travel Alberta Conference; Travel Projected 2016 Enterprise Budget 6,345,376.55 Alberta Calgary meetings (2); AHLA Conference; HAC - staff & board chair 6,954.83 Signed off for possible access from reserve up to 868,428.45 Subscriptions & Memberships 2,928.82 AGM & Annual Report 3,585.00 Potential Accessible 2016 Budget 7,213,805.00 Giveaways 3,012.04 Board & Staff entertaining 2,294.63 Check-in/Jack Rabbit booking engine – ET Website to EDMH Hotels 13,250.78 CLUSTER ACTUALS 2016 Southside 271,746.23 Tradeshows and tradeshow support 7,741.40 Downtown 300,557.89 Research; Google Ad Campaigns; Survey Monkey 8,096.00 Westend 233,106.39 Cluster & Board Committees, Board TOTAL CLUSTER INVESTMENTS 805,410.51 retreat, functions & gifts 15,755.14 TOTAL INITIATIVES SPEND: 170,555.26

EDMONTON DESTINATION MARKETING HOTELS 2016 ANNUAL REPORT / 7 2016 Metasearch & VFR Campaign Target BC Meta>Direct Activity Analysis meta-exploreedmonton.com 1/1/2016 – 12/31/2016 • THE ENTIRE CANADIAN ECONOMY WAS DOWN TOTAL Google TripAdvisor Trivago** IN 2016 WITH TWO NOTABLE EXCEPTIONS: ONTARIO – PLUS ONE PROVINCE WITH WHICH Avg. Cost Per Referral $3.03 $3.30 $4.85 $0.94 WE SHARE A BORDER – BRITISH COLUMBIA. Avg. Referrals Per Booking* 20 12 14 33 2016 also had the US/Canadian exchange rate down by 30%. The campaign premise was that Referral to Booking CVR* 6.19% 8.59% 6.93% 3.05% many BC residents who had previously sought an Est. Avg. Cost Per Booking* $45.53 $38.45 $69.98 $28.15 urban experience by crossing the border to the Est. Avg. Booking Amount $219.67 $162.62 $296.81 $199.59 States would be concerned with the costs. This would result in an anticipated pent-up demand Total Referrals 55,335 31,917 7,776 15.642 for an urban location that’s easily accessible. Est. Bookings* 3,758 2.742 539 477 Combined with the fact that Edmonton has recently reinvented itself, it was time to reach a Est Total Spend $157,791.55 $105,433.82 $37,721.69 $14,636.04 new, economically strong market with an untold Est. Booking Revenue* $701,084.75 $445,901.31 $159,979.42 $95,204.0 Edmonton story. This is how the VFR Campaign: Target BC was born. Est. ROI* 4.4 4.2 4.2 6.5 You’ll see by the creative that the idea was to Total Interstitial make people say ‘who knew?’ about their beliefs 106,060 33,537 7,851 64,672 Ad Impressions of Edmonton. What a great opportunity to shift Interstitial Ad Referrals 3,921 1,585 355 1,981 their perceptions and ours, proving that this was a great investment. We reached over 7 million Ad Click Rate 3.70% 4.73% 4.52% 3.06% people who listed travel, sports and cuisine as motivators, of which over 110,000 people linked to Avg. Advance Stay in Days 17 15 20 15 our ExploreEdmonton.com/accommodations page, Avg. Length of Stay in Days 2 1 2 2 of which we saw 603 conversions (there could be more room nights; the tracking just advised of Avg. Daily Rate Per Click $125.48 $127. 28 $131.40 $117.77 conversions to our hotels’ booking sites). Avg. Trip Value Per Click $210.79 $185.39 $253.80 $193.17 The Metasearch campaign continued through 2016, with minimal investment ($400K). This again Top 10 Referral Cities Top 10 Referral Regions **All amounts are in was our way to redirect OTA booking straight to Calgary 25.83% Alberta 63.65% USD. Trivago Cost Per your hotels. Referral uses a 1.09 Edmonton 13.88% Saskatchewan 11.22% exchange rate from Saskatoon 5.27% British Columbia 10.26% Euros to USD. 112,187 visits to the Accommodations Vancouver 4.12% Ontario 5.49% page since the start of the campaign Fort McMurray 3.48% Manitoba 0.34% Grande Prairie 3.48% Quebec < 1% conversions generated amounting Regina 2.30% N.W.T. < 1% 603 to an overall cost per lead of Red Deer 1.51% England < 1% $49.41 Toronto < 1% Texas < 1% Winnipeg < 1% Nova Scotia < 1% During the campaign the ads have achieved over 7,400,000 impressions 8 \ Edmonton International Airport

EIA AND EDMH: DRIVING ROOM NIGHTS THROUGH INTERNATIONAL VISITS. Since 2014, Edmonton has added three key transatlantic routes to the city’s tourism and business offerings. We know that KLM, Icelandair and WestJet committed to Edmonton because they saw opportunity and promise in the strong collaboration between the City of Edmonton, EDMH, Edmonton Tourism, Edmonton Economic Development Corporation, Edmonton’s business community, the citizens of Edmonton and Edmonton International Airport. With more modest local economic growth, it has been critical that we capitalize on the international air routes that enable more and more tourists from other countries to visit Edmonton and drive up room night stays. EDMH’s shared leadership generated an 8.6 per cent increase in the number of travellers enjoying transatlantic air service between Edmonton and Reykjavik on Icelandair, Amsterdam on KLM and London on the new WestJet London-Gatwick seasonal service. When viewed more closely, the key inbound passenger growth areas have been Netherlands, Germany, UK, France, Denmark and Finland. Further growth can be seen when we note that the KLM and Icelandair routes’ inbound passengers numbers grew by 26 per cent in 2016 over 2015. And a final statistic to support the value of our work together: these international visitors to Edmonton are conservatively estimated to have spent more than $3.6 million in total hotel room and incidental spend within Edmonton’s hotels. EIA and its partners have engaged in an effective strategy to build confidence with the airlines investing in Edmonton, and we will continue to execute on the core strategies of our current passenger market development efforts, which focuses on international inbound passenger segments. The EIA team will also collaborate with their tourism partners, including EDMH, Edmonton Tourism, Travel Alberta and others to ensure that they are effectively leading in key passenger market segments. We collectively look forward to the partnership and success! Edmonton Tourism 2016EDMONTON AS A CITY AND DESTINATION FOR VISITORS CONTINUES TO GROW AND EVOLVE. Our goal is to increase visitation, entice longer stays, and increase tourism spending, and we will accomplish this by: driving demand for our city’s experiences, focusing on proactive growth strategies for the city, and setting consistent performance measures that help us drive improved results and build on Edmonton’s brand and reputation as a great host city and place to visit.

EDMH Program Funding Allocations Marketing 41% $2,049,999.59 Sales & Events 43% $2,149,999.57 Communications & Distribution 15% $749,999.85 Business Development 1% $49,999.99 total* $4,999,999.00 (*reforecast from original $5,150,000.00)

Inclusive of ‘Opportunity Funds’ of: Events 2016 Committed $1,346,724.25 2016 Transference from M&C Contingency $96,724.25 Meetings & Conventions 2016 Committed $69,924.08 2016 Contingency $0.00

10 \ Meetings & Conventions 2016: Selected Highlights • 36,819 contracted room nights, • Won the bid to host Professional Conference Management 19.19% increase over 2015 As a major contributor, Association – Innovation Conference 2020. Nova Hotels is an • Began reviewing RFP leads active and supportive • Showcased Edmonton to 450 of Canada’s top Meeting Planners. in relation to Edmonton’s member of EDMH and Core Industry Focus • Produced winning bid to secure the 2018 Volleyball its effort to position • On-The-Books Forward Canada National Championships which will bring in 800 Edmonton as a Forecasting Tool increased teams, 22,000 room nights for a visitor economy impact preferred destination. reach with data now shared of $5.4 million and economic impact of $27 million. The EDMH program is a from 92% of EDMH properties prime example of when • The You Think You Know Edmonton video suite had 10 private industry and Edmonton events new releases which garnered over 5.8 million views. key stakeholders work collaboratively towards • 56 events confirmed totalling a common goal 41,888 contracted room • Travel Trade saw 76 itinerary inclusions; Travel Trade began tracking group room nights and contributed 8,905 room nights in 2016. especially during these nights, 28% increase over tough economic times.” 2015, and producing $10.3 • Media Quality Score for earned media nets 8.6/10 million in visitor economy. Aleksa Mrdjenovich, President, Nova Hotels • Year one of Edmonton Marathon • Executed 18 Edmonton-led media visits; Reached over 40 Growth Pilot Project achieved million in articles directly influenced by the team. its goal in increasing race registration by 450 participants to • Canadian Geographic Travel featured Winter City Edmonton on the 4,485, a 10% increase from 2015. front cover of their 2016-2017 edition, estimated reach of 1.2 million. • Produced bid to secure the 2020 ITU World Triathlon Series Grand Final which will 2016 Edmonton Tourism Results attract over 5,000 participants and spectators, and over 6,000 Visitor Economy contracted room nights for a full $18.8 Million economic impact of $9.3 million. Room Nights 78,707 Online Website • Referrals to industry up Sessions 1.1 Million 29% to over 246,000 Social Media organic • Accommodations 4 Million reach pageviews up 118% New Itineraries featuring • www.exploreedmonton.com Edmonton 42 visits up 50% to 1.45 million Media 8 out of 10 quality score • Reach up 97% to 6.9 million Earned Travel • Instagram community growth Media Value $6 Million up 126% to 44,000

EDMONTON DESTINATION MARKETING HOTELS 2016 ANNUAL REPORT / 11 2016 Changes

Rogers Place CFR Rogers Place opened in September 2016 with a high profile CFR (Canadian Finals Rodeo) officially debut. Bob Nicholson, Chief Executive Officer and Vice- both left Edmonton and then returned Chairman of the Oilers Entertainment Group said that the back to Edmonton in 2016. remainder of that year had less than a dozen ‘dark’ nights.

12 \ World Trade Centre Phone: 780.426.4715 5th Floor, 9990 Fax: 780.426.0535 Edmonton, Alberta, T5J 1P7 www.exploreedmonton.com

Edmonton Advantage Program Terms of Reference

Intent The intent of the Edmonton Advantage (EA) Program is to be a tool for Edmonton Tourism’s Meetings & Conventions division (hereafter referred to as Edmonton Tourism) to increase the opportunity for its stakeholders to secure group business into the Edmonton region. Edmonton Tourism will take the lead on all EA applicable bookings

Participation All EDMH participating hotels in good standing (here after referred to as hotels) as well the Shaw Conference Centre and at Northlands Park (hereafter referred to as anchor Meeting Planner Research - venues) are able to participate in this program. Program Structure The EA program consists of two components: Standard and Sponsorship support

Standard support Destination Selection & Trends Standard support denotes that Edmonton Tourism has received a Request for Proposal (RFP) from an organization looking to hold a meeting, conference or event (hereafter referred to as program) that clearly states that for Edmonton to be considered for said program financial assistance(1) will be required. Should an organization fall into this category as determined by Edmonton Tourism, the criteria are as follows: • An Organization will submit a written request for financial support to Edmonton Tourism as part of their RFP Executed for Edmonton Destination Marketing Hotels • New and repeat programs will be considered for the EA • EA is not available for existing contracted business • Utilizing a minimum of three hundred (300) room nights on peak utilizing minimum two (2) hotels for two (2) nights or minimum six hundred and fifty (650) rooms nights total utilizing minimum two (2) hotels

Sponsorship support

Sponsorship support denotes Edmonton Tourism has determined that the EA as outlined under Standard support does not provide sufficient financial support to meet the minimum bid requirements as outlined within their RFP. In order to qualify for Sponsorship support the following criteria applies. Friday, June 24, 2016 • An Organization will submit a written request for financial support to Edmonton Tourism as part of their RFP • New and repeat programs will be considered for the EA • EA is not available for existing contracted business

World Trade Centre Phone: 780.426.4715 5th Floor, 9990 Jasper Avenue Fax: 780.426.0535 Edmonton, Alberta, T5J 1P7 www.exploreedmonton.com

• Utilizing a minimum of three hundred (300) room nights on peak utilizing minimum two (2) hotels for two (2) nights or minimum six hundred and fifty (650) rooms nights total utilizing minimum two (2) hotels • Standard support EA does not meet financial request as outlined in the RFP • Maximum Sponsorship support of 5.5% of the total economic Impact can be provided without approval from the EDMH • The organization offers Edmonton Tourism Promotional Opportunities commensurate with the program’s current Sponsorship prospectus

Stakeholder

The EA is a “pay to play” program. The stakeholder (Hotel and/or anchor venue) role in this program is as follows:

Host Accommodation Suppliers

• Must be an active EDMH participating hotel in good standing • Must provide accurate program guestroom information (i.e. proposal, contract, addendum and room pickup) at all times to Edmonton Tourism in a timely fashion • A rebate of 10% of the confirmed daily room rate will be offered to the program organizer based on a sliding scale of applicable (contracted actualized) guestrooms. • The EDMH participating hotel does not pay the rebate amount directly. This amount is provided to Edmonton Tourism by the EDMH in an annual stipend and is utilized to fulfill the obligations set forth with the EA Agreement provided by Edmonton Tourism

Host Meeting Space Venue

• A 25% discount off the gross meeting space rental must be provided by the host venue to the organizer • The Host Venue discount is not a cash contribution to the EA

*Please see attached Appendix A for a detailed breakdown of the above noted contributions

Reporting

The EDMH will receive annual reporting of actualized, definite and tentative EA commitments.

1. Financial support requests must be clearly stated in the RFP to Edmonton Tourism in the initial Lead Bulletin phase (Examples of financial support may include but are not limited to items such as; Complimentary or reduced cost for meetings space, Complimentary opening or closing reception or complimentary transportation to host meeting venue) Research Edmonton Advantage More research was commissioned by the EDMH on the Ongoing review of the Edmonton Advantage, as part of behalf of our members, specifically on which motivators the Collaborative Meeting & Convention Committees work help planners decide on Meeting & Convention locations. to establish supportable M&C costs of acquisition and maximize effectiveness of sales.

EDMONTON DESTINATION MARKETING HOTELS 2016 ANNUAL REPORT / 13 14 \ Downtown Representing board members, Downtown members, board Representing Wong Richard and Turta Garrett minutes 3.23 2016 1, Jan Average Time on 32,356 2016 1, Jan Total Landing Page Visits exploreedmonton.com/downtown Accommodations Page

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exploreedmonton.com/downtown and Page Facebook Downtown ToCall Action: opt-ins. email and visitation webpage to drive contest with promotion media Social 19 /Feb Downtown Dining WEek Campaign Promotional Campaign L Call To Action: exploreedmonton.com/downtown messages. creative direct simple, with Campaign focused on driving conversions Average Average eisure eisure Conversions Impressions Sep 15 Sep Feb 22 Feb

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1223 100 795 152 during cmpn. page landing Downtown to visits Unique page contest to throughs Total click- emails CASL-compliant Facebook ‘Likes’ Silverskate Retargeting / Jan 12 – Feb 19, 2016 Retargeting campaign with festival message to leverage Edmonton Tourism event ads and promote conversions. Call To Action: exploreedmonton.com/downtown

Impressions 1,500,543 Clicks 2,853 Average CTR 0.19%

Holiday Campaign Impressions Deep Freeze Retargeting /Nov 14 – Dec 31, 2016 6,011,510 /Nov 27, 2016 – Jan 10, 2017 Retargeting sponsorship to leverage Campaign with experiential Clicks message to drive 25,473 Edmonton Tourism event ads and conversions over the holiday promote conversions. season. 0.42% Average CTR Call To Action: Call To Action: exploreedmonton.com/downtown exploreedmonton.com/ Conversions downtown and direct 120 Clicks 745 booking link for Downtown Referrals from Deep Freeze site 51

Meetings & Conventions Sales Activities Sales Missions Events Tradeshows Experiential Fam Events 1 Reps Partnered with Southside and PCMA Dinner Reception Vancouver /Sep 7 Tzin Edmonton Tourism to take TÊte À TÊte 2 Reps Toronto /Sep 19 Edmonton on the road. Hosting Asae Annual Conference 1 Rep Ottawa /Sep 21 clients to an Edmonton fashion experience with entrepreneur Incentiveworks 2 Reps and Edmonton-advocate, Kendall Barber of Poppy Barley.

EDMONTON DESTINATION MARKETING HOTELS 2016 ANNUAL REPORT / 15 16 \ Southside minutes 4.25 2016 1, Jan Average Time on 37,591 2016 1, Jan Total Landing Page Visits exploreedmonton.com/southside Representing board members, Southside members, board Representing Naylor Karen and Li Dawn Accommodations Page

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Conversions Average Clicks Impressions CTR 317,103 Impressions 1602 Clicks Average 0.51% CTR

Angry Birds retargeting /Oct 24 – Dec 30, 2016 Retargeting campaign with Angry Birds creative message to leverage Edmonton Tourism Holiday Campaign /Nov 14 – Dec 31, 2016 event ads and promote conversions. Campaign promoting gift card offer to drive Call To Action: exploreedmonton.com/southside and direct booking widget conversions during the holiday period. Call To Action: Campaign deals page on exploreedmonton.com Fringe Festival Retargeting /Jul 8 – Aug 9, 2016 Impressions 6,011,510 Retargeting campaign with summer festival message to leverage Edmonton Tourism Clicks 24,457 event ads and promote conversions. Call To Action: Average CTR 0.51% exploreedmonton.com/southside Conversions 103 Impressions 228,448 Visits to 15,042 Total Deals Page 13,078 Unique Clicks 1,149 Avg. time on Deals Page 0:07:39 Average CTR 0.50%

Meetings & Conventions Sales Activities Sales Missions Events Tradeshows Experiential Fam Events 1 Rep Partnered with Downtown and PCMA Rustic Long-table Dinner Vancouver /Sep 7 Edmonton Tourism to take TÊte À TÊte 2 Reps Toronto /Sep 19 Edmonton on the road. Hosting Springtime in Washington 1 Rep Ottawa /Sep 21 clients to an Edmonton fashion experience with entrepreneur Incentiveworks 2 Reps and Edmonton-advocate, Kendall Barber of Poppy Barley.

EDMONTON DESTINATION MARKETING HOTELS 2016 ANNUAL REPORT / 17 18 \ Westend minutes 3.27 2016 1, Jan Average Time on 24,265 2016 1, Jan Total Landing Page Visits exploreedmonton.com/westend Representing board members, Westend Marine George and McCurdy Grant Accommodations Page

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234 0.35% 21,747 5,855,368 Sherlock Holmes retargeting / Mar 18 – Jun 30, 2016 Campaign promoting discount coupon offer to drive conversions during the run of the exhibit. Call To Action: Campaign deals page on exploreedmonton.com

Impressions 585,693 Clicks 1,970 Average CTR 0.34% Conversions (packages sold) 140 Visits to 3,148 Total Shop, Stay and Save Holiday Campaign Deals Page 2,889 Unique /Nov 14 – Dec 31, 2016 Avg. time on Campaign promoting gas card offer to drive Deals Page 0:03:11 conversions during the holiday period. Call To Action: campaign deals page Visits to Edmonton Airshow retargeting Impressions 6,186,618 Deals Page 574,208 13,277 Total / Jul 6 –Aug 6, 2016 Impressions Clicks 22,415 11,547 Unique Retargeting campaign with discount ticket offer to leverage Edmonton 3018 Tourism event ads and drive conversions.. Clicks Average Avg. time on CTR 0.36% Deals Page Call To Action: 0.53% Conversions 127 0:05:29 exploreedmonton.com/westend Average CTR Meetings & Conventions Sales Activities Tradeshows Experiential Fam Event TÊte À TÊte 2 Reps Outdoor Lunch Outdoor lunch at the Edmonton 2 Reps Incentiveworks AirShow including private tour and performances.

EDMONTON DESTINATION MARKETING HOTELS 2016 ANNUAL REPORT / 19 All clusters unite

Downtown, Southside & Westend Eskimos Campaign /Jun 8 – Nov 5, 2016 Campaign promoting discounted Eskimos ticket offer to drive conversions. Downtown, Southside & Westend Call to action: Call to action: allaccesssummer.com Campaign deals page on exploreedmonton.com

Deals Page Visits Avg. Time on All Access Campaign “Check Availability” clicks: /Jun 20 – Sep 5, 2016 650 14,622 unique / 19,241 total Deals Page 0:03:31 Cluster partnership campaign to promote the Downtown Results compelling activities and attractions in clusters 188 Conversions through contest, and encourage bookings as (253 total tracked Impressions through Jack Rabbit) 2,411,708 next step through embedded widget. Clicks 9202 / CTR 0.38% Conversions 14 Downtown Results Southside Results Westend Results Southside Results Impressions 6,084,314 Impressions 6,043,247 Impressions 3,444,653 Impressions 2,463,113 Clicks 8736 / CTR 0.35% Clicks 32,475 Clicks 30,711 Clicks 15,100 Conversions 19 CTR: 0.53% CTR 0.51% CTR 0.44% Westend Results Impressions 2,418,013 Conversions 79 Conversions 55 Conversions 54 Clicks 8009 / CTR 0.33% Conversions 20 \ 16 Management’s Responsibility To the Members of Edmonton Independent To the Members of Edmonton Destination Marketing Hotels Ltd. Auditor’s Destination Marketing Hotels Ltd.: We have audited the accompanying financial Management is responsible for the preparation and information of Edmonton Destination Marketing Report presentation of the accompanying financial information, Hotels Ltd., which comprise the statement of including responsibility for significant accounting financial position as at December 31, 2016, judgments and estimates in accordance with its Articles and the statements of revenue, expenses of Association. This responsibility includes selecting and surplus and cash flows for the year then Edmonton appropriate accounting principles and methods, and ended, and a summary of significant accounting making decisions affecting the measurement of policies and other explanatory information. transactions in which objective judgment is required. This financial information has been prepared Destination using the basis of accounting disclosed In discharging its responsibilities for the integrity and in Note 2 to the financial information. Marketing fairness of the financial information, management designs and maintains the necessary accounting Management’s Responsibility systems and related internal controls to provide for the Financial Information Hotels Ltd. reasonable assurance that transactions are authorized, Management is responsible for the preparation assets are safeguarded and financial records are and fair presentation of this financial information Financial properly maintained to provide reliable information in accordance with its Articles of Association, for the preparation of financial information. and for such internal control as management Information determines is necessary to enable the preparation December 31, 2016 The Board of Directors is composed entirely of of financial information that is free from material Directors who are neither management nor employees misstatement, whether due to fraud or error. of the Organization. The Board is responsible for overseeing management in the performance of its Auditors’ Responsibility financial reporting responsibilities, and for approving Our responsibility is to express an opinion the financial information included in the annual on the financial information based on our report. The Board fulfils these responsibilities audit. We conducted our audit in accordance by reviewing the financial information prepared with Canadian generally accepted auditing by management and discussing relevant matters standards. Those standards require that we with management and external auditors. The comply with ethical requirements and plan Board is also responsible for recommending the and perform the audit to obtain reasonable appointment of the Organization’s external auditors. assurance about whether the financial information is free from material misstatement. MNP LLP is appointed by the members to audit the financial information and report directly An audit involves performing procedures to to them; their report follows. The external obtain audit evidence about the amounts and auditors have full and free access to, and meet disclosures in the financial information. The periodically and separately with, both the Board procedures selected depend on the auditors’ and management to discuss their audit findings. judgment, including the assessment of the risks of material misstatement of the financial March 13, 2017 information, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the

Executive Director EDMONTON DESTINATION MARKETING HOTELS 2016 ANNUAL REPORT / 21 Statement of Financial Position As at December 31, 2016 entity’s preparation and fair presentation of the financial 2016 2015 information in order to design audit procedures that ASSETS are appropriate in the circumstances, but not for the CURRENT purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes Cash & Cash Equivalents evaluating the appropriateness of accounting policies (Note 4) 9,186,844 11,100,669 used and the reasonableness of accounting estimates Accounts receivable 769,979 686,453 made by management, as well as evaluating the overall presentation of the financial information. Prepaid expenses - 975 We believe that the audit evidence we have 9,956,823 11,788,097 obtained is sufficient and appropriate to LIABILITIES provide a basis for our audit opinion. CURRENT LIABILITIES Opinion Accounts payable In our opinion, the financial information present and accruals 72,827 1,248,958 fairly, in all material respects, the financial position of Edmonton Destination Marketing Hotels Ltd. Deferred revenue (Note 3) 9,355,386 10,081,720 as at December 31, 2016 and the results of its 9,428,213 11,330,678 operations and its cash flows for the year then Reserve (Note 4) 300,000 300,000 ended in accordance with the basis of accounting disclosed in Note 2 to the financial information. 9,728,213 11,630,678 Basis of Accounting and NET ASSETS Restriction on Distribution and Use 8,880 8,375 Without modifying our opinion, we draw attention to Share capital (Note 5) Note 2 to the financial information, which describes Surplus 219,730 149,044 the basis of accounting. This financial information, 228,610 157,419 which has not been, and was not intended to be, prepared in accordance with Canadian accounting 9,956,823 11,788,097 standards for not-for-profit organizations, is solely for the information and use of the members of Edmonton Destination Marketing Hotels Ltd. As a result, the financial information may not be suitable for another purpose. The financial information is not Approved on behalf of the Board intended to be and should not be used by anyone other than specified users or for any other purpose..

Karen Naylor, Director Garrett Turta, Director Edmonton, Alberta March 13, 2017 Chartered Professional Accountants

22 \ Statement of Revenue and Expenses and Surplus Statement of Cash flows For the year ended December 31, 2016 For the year ended December 31, 2016 2016 2015 2016 2015 REVENUE CASH PROVIDED BY Deferred revenue recognized (USED FOR) THE (Note 1), (Note 3) 7,493,021 7,759,649 FOLLOWING ACTIVITIES Interest income 70,686 66,565 OPERATING 7,563,707 7,826,214 Excess of revenue over expenses 70,686 66,566 DIRECT EXPENSES CHANGES IN WORKING CAPITAL ACCOUNTS Promotional sponsorship 6,039,613 5,931,760 Accounts receivable (83,526) 162,155 Advertising media purchase 983,709 1,141,491 Prepaid expenses 975 99,995 Tradeshows 37,900 38,950 Accounts payable and accruals (1,176,131) 140,208 Familiarization tour events 31,689 68,485 Deferred revenue (726,334) (576,622) Website 12,009 112 Outside Services 9,295 154,638 (1,914,330) (107,698) Promotional materials 5,256 62,590 FINANCING Issuance of share capital 505 993 Graphic design/production 3,585 5,474 Redemption of share capital - (349) Entertaining 1,456 1,167 7,124,512 7,404,667 505 644 EXCESS OF REVENUE DECREASE IN CASH OVER DIRECT EXPENSES 439,195 421,547 RESOURCES (1,913,825) (107,054) OPERATING EXPENSES CASH RESOURCES – 11,100,669 11, 207,723 Office and administration 274,700 278,004 BEGINNING OF YEAR Trustee fees 50,000 30,000 CASH RESOURCES – END OF YEAR 9,186,844 11,100,669 Professional fees 15,400 15,540 Board and Committee expenses 10,622 9,977 Legal fees 10,193 16,166 Bank charges and interest 7,521 4,898 Postage 73 396 368,509 354,981 EXCESS OF REVENUE OVER EXPENSES 70,686 66,566 SURPLUS – BEGINNING OF YEAR 149,044 82,478 SURPLUS – END OF YEAR 219,730 149,044

EDMONTON DESTINATION MARKETING HOTELS 2016 ANNUAL REPORT / 23 Notes to the Financial Information Revenue recognition For the year ended December 31, 2016 The Organization records marketing fees, calculated in accordance with the Subscription Agreement, based on representations 1. INCORPORATION AND NATURE from the member hotels. Marketing fees received are recorded OF THE ORGANIZATION as deferred revenues until the monies are spent on marketing Edmonton Destination Marketing Hotels Ltd. (the “Organization”) initiatives as outlined in the Subscription Agreement. The is a company limited by shares incorporated on October 23, 2012 Organization recognizes all other revenue on the accrual basis. under Part 9 of the Companies Act in the province of Alberta. The Organization was formed to continue similar activities of Expenditures Edmonton Destination Marketing Fund (the “Fund”) (a program The Organization contributes various amounts to projects as a administered and managed by Edmonton Economic Development part of its nature of operations. As the Organization does not Corporation) and is a subsequent program of the Fund under section have control on how this funding is used after commitment 5.4 of the Destination Marketing Agreement between Edmonton is established, amounts are expensed at the earlier of when Economic Development Corporation and participating hotels. the payment is made or the completion of the project. The Organization receives contributions through its members 3. DEFERRED REVENUE pursuant to its Amended Articles of Association, Amended Deferred revenue consists of unspent funds that the Fund Memorandum of Association and provincial funding. Before is required to spend on marketing initiatives as outlined in receiving shares of the Organization, a member executes a the Destination Marketing Agreement. Changes in the Subscription Agreement and covenants to pay the destination deferred revenue balance are as follows: marketing fee. The funding is utilized by the Organization to 2016 2017 offer services focused on the promotion of tourism through Balance, beginning of year 10,081,720 10,658,342 destination travel by tourists, conventions, events and delegate and business travel and film production within Edmonton. This Marketing fees promotion is done through advertising, public relations, media received during the year 6,766,687 7,183,027 relations, sales, promotional activities, research and associated Less: amounts recognized as marketing. The Organization is maintained and operated under revenue during the year (7,493,021) (7,759,649) the direction of the Organization’s Board of Directors. Balance, end of year 9,355,386 10,081,720 2. SIGNIFICANT ACCOUNTING POLICIES Basis of presentation 4. RESERVE This financial information has been prepared by management The Edmonton Destination Marketing Agreement requires in accordance with Agreements between the Organization a portion of the funds collected over a three-year term be and its members as described in Note 1. Because the precise setup as a reserve fund. The reserve fund is currently held determination of many assets, liabilities, revenues and expenses as cash, which has been restricted for use upon the approval are dependent on future events, the preparation of financial of the Board. The corresponding funds are presented as a information for a period necessarily includes the use of estimates non-current liability in the statement of financial position. and approximations which have been made using careful 5. SHARE CAPITAL judgment. Actual results could differ from those estimates. This The authorized capital of the Organization is as follows: financial information has, in management’s opinion, been properly prepared within reasonable limits of materiality and within the 200 Class A common, voting shares without nominal or par value. framework of the accounting policies summarized below. The maximum price or consideration for which a Class A common share may be issued for is $1. Cash and cash equivalents Cash and cash equivalents include cash and cash held in 10,000 Class B common, voting shares without nominal or par value. high-interest accounts held with a broker. The maximum price or consideration for which a Class B common share may be issued for is $1.

24 \ SHARE CAPITAL Class A Class B 2016 2015 Balance,beginning of year 49 8,326 8,375 7,731 Shares Issued 4 501 505 993 Shares redeemed - - - (349) Balance, end of year 53 8,827 8,880 8,375

Schedule of Revenue and expenses by cluster For the year ended December 31, 2016 Downtown Southside Westend 2016 2015 REVENUE General Cluster Cluster Cluster total total

Deferred revenue recognized 6,687,611 300,558 271,746 233,106 7,493,021 7,759,649 Interest income 70,686 - - - 70,686 66,565 6,758,297 300,558 271,746 233,106 7,563,707 7,826,214 DIRECT EXPENSES

Promotional sponsorship 5,823,774 86,029 53,022 76,788 6,039,613 5,931,760 Advertising media purchases 456,395 180,668 202,138 144,508 983,709 1,141,491 Tradeshows 7,740 11,933 9,322 8,905 37,900 38,950 Familiarization tour events 344 21,421 7,168 2,756 31,689 68,485 Website 12,009 - - - 12,009 112 Outside services 9,295 - - - 9,295 154,638 Promotional materials 5,251 - 5 - 5,256 62,590 Graphic design/production 3,585 - - - 3,585 5,474 Entertaining 1,451 - 5 - 1,456 1,167 6,319,844 300,051 271,660 232,957 7,124,512 7,404,667

EXCESS OF REVENUE OVER 438,453 507 86 149 439,195 421,547 DIRECT EXPENSES OPERATING EXPENSES 367,767 507 86 149 368,509 354,982 EXCESS OF REVENUE OVER EXPENSES 70,686 - - - 70,686 66,565 DEFERRED REVENUE – BEGINNING 8,542,369 660,000 384,273 495,078 10,081,720 10,658,342 OF YEAR DEFERRED REVENUE – END OF YEAR 7,944,776 617,384 310,793 482,433 9,355,386 10,081,720

EDMONTON DESTINATION MARKETING HOTELS 2016 ANNUAL REPORT / 25 Looking towards 2017 OPERATIONAL BUDGET 2017 ($) Projected Total 2017 Budget 6,696,524.64 AHLA – cheques/stamps/courier. Laptops/cell/ Enterprise Portion 6,026,872.18 office equipment. Staff salaries & benefits. Stationary/board & staff business cards 232,550.00 Forecasted Total 2017 EDMH Revenues 6,696,524.64 Year End Financial Audit 14,500.00 Less 10% to Clusters 669,652.45 Storage unit 2,015.00 Total Enterprise Budget (following) 6,026,872.18 Staff – local Travel Exp/Expenses 5,500.00 AHLA Trustee Fee 50,000.00 SPONSORSHIP/INVESTMENTS 2017 ($) AHLA – office rental 30,000.00 Edmonton Tourism – Opportunity Funds + Program 4,260,000.00 AHLA – bank fees 1,500.00 MetaSearch 110,100.00 PKF Report 1,200.00 Northlands 250,000.00 Legal Fees 10,000.00 Edmonton International Airport 250,000.00 OEG 500,000.00 Insurances (board & tenant) 6,000.00 Contingency Fund 250,000.00 OPERATIONAL BUDGET: 353,265.00 SPONSORSHIP BUDGET 5,620,100.00 TOTAL PROJECTED 2017 ENTERPRISE BUDGET 6,026,865.00 INITIATIVES TOTAL TO CLUSTERS 669,652.47 IMPACT/Board networking events 4,000.00 TOTAL PROJECTED 2017 Membership Initiatives (incl. continued COMBINED ACTIVE BUDGETS 6,696,517.47 experiential photography/packaging/etc.) 1,200.00 Edmonton Certified & Cluster HQ Support PROJECTED BUDGET BY CLUSTER (mileage/parking/AV rental/F&B for meetings, etc.) 500.00 Downtown 251,591.09 EDMH Enterprise campaigns on Southside 190,846,92 VFR Edmonton Facebook site; 5,000.00 Westend 227, 214.46 Travel Alberta Conference; Travel Alberta Calgary meetings (2); AHLA Conference; Edmonton Tourism funding of $4,260,000.00 includes the HAC – staff & Board Chair 6,000.00 2017 Events & Meeting & Conventions Opportunity Fund Subscriptions & Memberships 3,000.00 commitments of $2,349,839.00 AGM & Annual Report 3,300.00 Giveaways 1,000.00 Board & Staff entertaining 2,000.00 CBRE 2017 projections: Check-in/Jack Rabbit booking engine – ET Website to EDMH Hotels 18,000.00 2014 2015 2016 2017 2016–17 Research; Google Ad Campaigns; Survey Monkey – Actual Actual Actual Forecast Change Committee, Board retreat, Board functions & gifts 9,500.00 Occupancy 69% 63% 59% 56% (3.0pt) INITIATIVES BUDGET: 53,500.00 ADR $134 $136 $130 $128 (1.5%) RevPAR $93 $86 $77 $72 (6.5%) 26 \

2017 issues and Opportunities The largest looming threat on the 2017 horizon is a possible 2017 will also be the first operating year with significant selective Municipal Hotel Tax. This would be focused on increases to our members operations costs. As of January 1st, Edmonton and Calgary as part of Alberta’s Big City Charter 2017, the Carbon Levy was imposed, which hits your bottom transference of powers including taxation, but every city in line along with the annual 3-year increase (starting in October, Alberta will fight for this ability if indeed it is given to the 2016) of the Minimum Wage. Combined with new hotel two largest centres. The possibility of such taxation does not inventory coming online, we expect that 2017 will not see any end at the Alberta borders, with major locations like Toronto positive growth for our full membership, which sadly is echoed buffering for the fight against adding another tax directed to the in CBRE projections. accommodation sector. In 2017 the major focus of EDMH funds will, as always, go to The biggest concern about such a tax being imposed on our supporting Edmonton Tourism. The board is also working to members is the question as to where the money will be spent. At create a Memorandum of Understanding (MOU) with Tourism this stage we have not heard that it will be a Municipal Tourism to ensure that both sides have clear partnership objectives Levy, so the dollars could go elsewhere. Even if the dollars are and responsibilities. Other major investment dollars are earmarked for Edmonton Tourism, we’ve seen at a provincial going to the Canadian Finals Rodeo/Northlands, the Oilers government level that the Tourism Levy has not fully gone to Entertainment Group and Edmonton International Airport. Travel Alberta & Alberta Parks & Recreation for years. A recent The board is also ensuring there are contingency funds to example is the 2014 revenue generated by the Tourism Levy – enable response to any last-minute opportunity. which was to be spent in 2016-2017. The $87 million generated by the Tourism Levy was allocated: The Cluster Marketing Campaigns, for the second year in a row will focus their objectives in driving conversion, and utilizing $49.5 million to Travel Alberta and the shortest possible path to purchase. Although marketing + $11.5 million to Tourism, Parks & Recreation initiatives still aim to ‘fill the funnel’, making more people = $26 million stayed in general revenues. . aware of Edmonton – one of the primary requirements for all campaigns is to drive room nights to our hotels. If such a hotel tax is to come into legislation, then the EDMH must ensure that we have industry people on a steering committee. It’s important that our voice is at the table that decides where the monies go and accountability for those investment dollars.

The EDMH has been an integral part of the hospitality industry since its inception. We are proud to be working closely with EDMH in promoting Edmonton as a key destination for leisure as well as corporate meetings. With the EDMH’s vision, I’m confident that we will be seeing many more key events happening in Edmonton which will in turn support the hospitality industry.” Renjith Vengalil, General Manager, Edmonton Marriott at the River Cree Resort It’s been my honour to serve as the Chairman of the EDMH for these past two years. These have been some of Alberta’s most turbulent times on record. With that, the EDMH still out-paced both non-EDMH Edmonton hotels and our closest neighbour – Calgary. Edmonton’s economy is not where it was two years ago, but we’re cautiously optimistic that we’re near the bottom, and the climb back can begin. I congratulate all EDMH members for having the vision to recognize that together we’re stronger, and truly we are greater than the sum of our parts. And I thank the many who have contributed their time and experience to make this a better organization, most specifically the Board of 2016.” Grant McCurdy, General Manager DoubleTree by Hilton & Home2 Suites by Hilton

Edmonton Destination Marketing Hotels Ltd. 2707 Ellwood Dr SW Edmonton, Alberta T6X 0P7 [email protected]

Cover photos: Alberta Legislature: Government of Alberta; Panama Papers: panamapapers.icij.org; Trump: salon.com credit AP/LM Otero; Fort McMurray fire: THE CANADIAN PRESS/Jonathan Hayward; Pipeline: theglobeandmail.com (Todd Korol/Reuters); Cohen: qz.com (credit I’ve seen the nations rise and fall / I’ve heard their stories, heard them all. Reuters/Eloy Alonso); Nice: abc.net.au/news/2016-07-16/nice-attack-france- mourns-84-victims-of-truck-attack/7634956 (AFP: Giuseppe Cacace); Going Down unemployment: albertaventure.com/2016/12/2016-review-year-mostly-forget/; Minimum wage: edmontonjournal.com (Ted S. Warren / AP); Prentice: macleans.ca/news/canada/state-memorial-service-will-pay-tribute-to-jim-prentice/ (JASON FRANSON/CP); Brexit: Designed by Starline – Freepik.com. All other photos courtesy of EEDC, EDMH and Travel Alberta.